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A summary of the internal environment, including the organization’s values and the key elements of the organization architecture that influence worker behavior.
Include the following characteristics when analyzing the internal environment:

  • Structure: This includes the ways the organization assigns formal roles and responsibilities, decision-making authority, expertise and skills, and work tasks. Think of the organization chart and how its implied structure directs the decision making, resource allocation, and workflow of the organization. Is it consistent with the strategy?
  • Systems: This comprises the information flows that coordinate activities between groups and across the organization structure while helping direct worker behavior, including performance management, financial management, operating, forecasting and planning, and other regulating mechanisms. How do these systems help align workers and their actions with the strategy?
  • Culture: This consists of the unwritten rules and norms that govern worker behavior and help coordinate the activities across structural boundaries. Is the organization culture an enabler or impediment to the corporate strategy? What specific behaviors embedded in the culture support the strategy? What specific behaviors block the strategy?